PwC’s 2025 Outlook: AI Drives Global Entertainment & Media Revenue Toward $3.5 Trillion, Advertising and Experience Economy Take Center Stage

Global Entertainment & Media Outlook 2025: AI Reshapes Growth Trajectory, Advertising, Experiences, and Emerging Markets Emerge as New Engines

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Executive Summary

According to the “Global Entertainment & Media Outlook 2025-2029” released by PwC in July 2025, the global entertainment and media (E&M) industry revenue approached $3 trillion in 2024 and is projected to exceed $3.5 trillion by 2029, with a compound annual growth rate (CAGR) of 3.7% for the period. This growth rate is higher than the average expected global economic growth but remains below pre-pandemic highs . Against a backdrop of ongoing economic uncertainty, the report highlights that deep integration of artificial intelligence (AI), surging advertising spending, and strong performance in emerging markets are key drivers .

Key projections from the report are summarized in the table below:

Area	2024 Revenue/Share	2029 Forecast Revenue/Share	CAGR or Key Growth Highlight
Total Global Industry Revenue	Nearly $3T	$3.5T	3.7% (2024-2029 CAGR)
Advertising Spend	Significant portion of revenue	Fastest-growing segment	6.1% (2024-2029 CAGR), triple the growth rate of consumer spend
Digital Advertising Share	72% (of total ad revenue)	80% (of total ad revenue)	AI-driven hyper-personalization is a key driver
Connected TV (CTV) Advertising	22% of traditional TV ad revenue (2024)	Projected to reach $51B, 45% of traditional TV ad revenue (2029)	Significant leap from 5.9% in 2020
Video Games Industry	$224B	Nearly $300B	5.7% (2024-2029 CAGR), exceeding the combined size of film and music industries
Film Industry (Global Box Office)	$33B	$41.5B	Consumer preference leans towards locally produced films
Non-Digital Consumer Spend (Live Music/Events/Box Office)	61% of consumer revenue (2024)	Share remains largely stable	Resilience of the offline experience economy
China Market Total Revenue	–	~$561B (16% of global)	4.5% (2024-2029 CAGR), above global average
China Mixed Reality (VR/AR) Market	–	$22.8B (2029)	13.1% (2024-2029 CAGR), poised to become the largest mobile AR market globally

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Key Trends Analysis

1、AI Reshapes the Landscape, Advertising Becomes the Core Growth Engine
The report emphasizes that advertising has become the primary driver of global E&M revenue in an environment of sluggish consumer spending growth . AI technology is fundamentally changing advertising models and efficiency through hyper-personalized marketing . For instance, Connected TV (CTV) advertising revenue is growing rapidly, projected to reach 45% of traditional TV ad revenue by 2029 . Bart Spiegel, PwC US Global Entertainment & Media Leader, noted, “AI is transforming content delivery models, democratizing content production, and enabling highly tailored experiences.” 

2、The Experience Economy Thrives Alongside Digital Content
Despite increased time spent on digital consumption, the report finds that consumers allocate a significant portion of their entertainment budget to non-digital, offline experiences . In 2024, non-digital formats like live music, events, and movie box office accounted for 61% of consumer revenue, a share expected to remain roughly stable . This underscores the growing value of scarce, authentic, shared offline experiences in an age of abundant digital content.

3、Emerging Markets Lead Growth, with China Standing Out
Developing markets are the main engines of global growth . China, the world’s second-largest E&M market, is expected to achieve a CAGR of 4.5% from 2024 to 2029, outperforming the global average . This growth is primarily driven by internet advertising . Furthermore, China’s mixed reality (VR/AR) market is expanding rapidly and is on track to become the largest mobile AR market globally by 2029 . Other markets like India and Indonesia are also forecasted to see CAGRs exceeding 7.5% .